How Municipalities Can Address Housing Affordability Through Code and Zoning Reform

Land Development
Published

Historical patterns of land use policy and zoning have either disincentivized or disallowed production of various housing types and price points. Many U.S. cities have zoned the majority of their residential land for single-family detached housing, which not is not the right choice for everyone. Code and zoning reform can help increase home supply and address the nation’s housing affordability crisis.

NAHB’s new resource, Model Housing and Land Development Code Guide, includes information about how updating housing and land development code can have real impacts on the costs and availability of housing. NAHB members in communities considering these changes can share this document with local officials and housing advocates to help educate them on the value of code and zoning reform.

Making the approval and review processes as efficient as possible should be a top priority. Lengthy and unpredictable processes add costs to housing development and hurt affordability. One potential solution to address this issue is to enact a housing approval shot-clock — for example a 60-day limit on issuing approval or denial for each housing proposal. Even better, cities such as Sacramento are now issuing policy that makes certain housing types by-right or able to bypass these entitlement processes all together. Another expediating strategy is to release preapproved plans for housing types.

The Model Housing and Land Development Code Guide also discusses the importance of legalizing and incentivizing a greater variety of housing types, including missing middle housing. Removing excessive and burdensome regulation that artificially raises the cost to build and sell homes should be closely examined. Often these come in the form of architectural design standards that have little to do with the safety, health and welfare basis of zoning. The guide provides good examples of pro-housing, sensible codes from across the United States.

Learn more through NAHB’s Land Use 101 toolkit.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Sponsored Content

Jan 20, 2026

Smart Sourcing, Smarter Basis: How AI Is Changing Land Acquisition

For decades, the process of screening off-market sites has remained painfully slow. But a shift is happening as top-tier land teams are moving away from manual data aggregation and toward AI-driven workflows to eliminate non-viable sites in minutes.

Economics | Material Costs

Jan 16, 2026

Building Material Price Growth Remains Elevated Despite a Sluggish Market

Residential building material price growth continued to climb toward the end of 2025, even as the new home construction market showed signs of slowing.

View all

Latest Economic News

Economics

Jan 20, 2026

New Single-Family Home Size Trends: Third Quarter 2025

New single-family home size has been generally falling since 2015 as a response to declining affordability conditions. An exception occurred when new home size increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower.

Economics

Jan 20, 2026

Third Quarter 2025 Multifamily Construction Data

According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased during the third quarter of 2025. For the quarter, 119,000 multifamily residences started construction. Of this total, 114,000 were built-for-rent.

Economics

Jan 19, 2026

Soft Conditions for Single-Family Built-for-Rent

Single-family built-for-rent construction fell back in the third quarter of 2025, as a higher cost of financing and increased multifamily supply crowded out development.